Putin: We're not a member of OPEC

President vows to meet its obligations, but stresses Russia's independence as a producer.

By Daniel J. Graeber

Russian President Vladimir Putin says his country will honor its
oil production commitments, but stresses Russia is not a member of
OPEC. EPA/SERGEI ILNITSKY/POOL

Russia's
president said his country would meet its obligations in terms of crude
oil production, but stressed Friday that Russia is not a member of OPEC.

Russia is on pace to average about 11 million
barrels of oil production per day this year, about 1.8 percent higher
than last year. If accurate, Russian production for the year would be at
or near a post-Soviet record.

Members of the Organization of Petroleum
Exporting Countries agreed to cut production by about what it expects in
demand growth next year. Most of that cut depends on non-member state
cooperation and relies in large part on Russia to be effective at easing
the supply-side strains that dragged oil prices to below $30 per barrel in early 2016.

"We will further cooperate with OPEC, meaning
that we will meet the obligations, but we are not a member-state of the
cartel and we are independent while being in contact with them and
meeting assumed obligations," he said.

Russia's energy minister in the past has expressed support for static production. Before the OPEC deal was reached in November, Putin said the country was ready to "freeze production" at current levels.

Russia set up an advisory panel that would
monitor compliance with the OPEC agreement. Russia said it would cut
about 300,000 barrels of oil per day from output, with is more than half
of the combined agreements from non-OPEC members.

A report this week from economists with
Societe Generale said Russia has a poor track record when it comes to
managed declines. Economists there said they're "very skeptical" about
Russia's participation in the deal, but said Putin's personal investment
in the cut could indicate a willingness to cooperate.

Russia's economy was damaged by the low price
of oil. Putin in his press conference said real gross domestic product
declined 3.7 percent. Though still under pressure, the president said
the nation's economy was recovering.

"In November, national GDP inched up," he
said. "Overall for the year we are expecting a decrease in GDP in the
range of 0.5 percent - 0.6 percent."

Putin: We're not a member of OPEC
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